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Can you please help me to clarify this statement? Thank you
Finance lease and sale then leaseback are the same.If a company currently owns a non-current asset, then a way of raising cash is to sell the asset to a leasing company and then lease it back from the leasing company.
So they receive now the value of the asset, but then have to pay each year to the leasing company (just as if they had borrowed the money and then had to repay each year to the lender).
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